The interim finance minister, Piyush Goyal held his first press meet as a finance minister on Friday after meeting the heads of public sector banks.

During the meet, he said, that the government was committed to support all state-run banks and strengthen their operations after several lenders reported a jump in net losses earlier this month.

"The government stands committed to support all 21 Public sector banks," Piyush Goyal told reporters after a meeting with bank chiefs.

Indian banks, already burdened by a near-record 9.5 trillion rupees ($141 billion) of soured loans as of last year, reported a further rise in bad loans in the March quarter after the Reserve Bank of India withdrew half a dozen loan-restructuring schemes and tightened some rules in February.

Goyal further informed media that they discussed credit flow and other issues&nbspwith PSU bank heads.

He further informed that bankers are looking to put up a mechanism to resolve stressed accounts in transparent and speedy manner and the banks will soon&nbspcreate a mechanism for managing stressed accounts.

"A presentation was made by SBI based on several years of experience and I am given to understand that all the bankers are now wishing to set up such a mechanism which will enable faster resolution of stressed accounts in a very transparent manner," news agency ANI reported.&nbsp

Piyush Goyal is a minister of railways and coal but currently, he has given an additional charge of a finance minister as Arun Jaitley is undergoing a treatment.

(With inputs from news agencies)

The interim finance minister, Piyush Goyal held his first press meet as a finance minister on Friday after meeting the heads of public sector banks

The interim finance minister, Piyush Goyal held his first press meet as a finance minister on Friday after meeting the heads of public sector banks. During the meet, he said, that the government was committed to support all state-run banks and strengthen their operations after several lenders reported a jump in net losses earlier this month. "The government stands committed to support all 21 Public sector banks," Piyush Goyal told reporters after a meeting with bank chiefs. Indian banks, already burdened by a near-record 9.5 trillion rupees ($141 billion) of soured loans as of last year, reported a further rise in bad loans in the March quarter after the Reserve Bank of India withdrew half a dozen loan-restructuring schemes and tightened some rules in February. Goyal further informed media that they discussed credit flow and other issues&nbspwith PSU bank heads. He further informed that bankers are looking to put up a mechanism to resolve stressed accounts in transparent and speedy manner and the banks will soon&nbspcreate a mechanism for managing stressed accounts. "A presentation was made by SBI based on several years of experience and I am given to understand that all the bankers are now wishing to set up such a mechanism which will enable faster resolution of stressed accounts in a very transparent manner," news agency ANI reported. Piyush Goyal is a minister of railways and coal but currently, he has given an additional charge of a finance minister as Arun Jaitley is undergoing a treatment. (With inputs from news agencies)

Government committed to support all state-run banks says, Piyush Goyal

India will inject 229.15 billion Rupees ($3.41 billion) into 13 state-run banks to help shore up the cash-strapped lenders and revive loan growth that has hit a two-decade low. 
 
The capital infusion is part of New Delhi&#39;s plans to invest 700 billion Rupees in state lenders over four years to March 2019. 
 
Finance Minister Arun Jaitley has budgeted 250 billion Rupees for bank recapitalisation this fiscal year, but he has committed to infuse more if required.&nbsp; 
 
Top lender State Bank of India will get 75.75 billion Rupees in capital, the finance ministry said in a statement on Tuesday. Indian Overseas Bank, which has the worst bad-loan ratio, is set to get 31.01 billion Rupees. 
 
A surge in bad loans and the full implementation of global Basel III bank capital rules mean Indian banks need billions of dollars of new capital.&nbsp; 
 
While relatively better balance sheets are expected to make it easier for private lenders tap financial markets, most state-run lenders - struggling with a pile of stressed assets and lower profits - are heavily reliant on the government for funds. 
 
Rating agency Fitch reckons Indian banks would need $90 billion in new capital to meet Basel III requirements, with about two dozen state-run banks accounting for 80 per cent of that figure. 
 
Fourth-biggest state-run lender Punjab National Bank, which reported a record loss in the March quarter, will get 28.16 billion Rupees, the finance ministry said. Bank of India, the third-biggest state-run lender, will get 17.84 billion.&nbsp; 
 
Bank stocks rose after the announcement, with the state-bank index trading 0.4 per cent higher in a Mumbai market that was down 0.1 per cent. 
 
(Reuters)

The capital infusion is part of New Delhi's plans to invest 700 billion Indian Rupees in state lenders over four years

India will inject 229.15 billion Rupees ($3.41 billion) into 13 state-run banks to help shore up the cash-strapped lenders and revive loan growth that has hit a two-decade low. The capital infusion is part of New Delhi's plans to invest 700 billion Rupees in state lenders over four years to March 2019. Finance Minister Arun Jaitley has budgeted 250 billion Rupees for bank recapitalisation this fiscal year, but he has committed to infuse more if required. Top lender State Bank of India will get 75.75 billion Rupees in capital, the finance ministry said in a statement on Tuesday. Indian Overseas Bank, which has the worst bad-loan ratio, is set to get 31.01 billion Rupees. A surge in bad loans and the full implementation of global Basel III bank capital rules mean Indian banks need billions of dollars of new capital. While relatively better balance sheets are expected to make it easier for private lenders tap financial markets, most state-run lenders - struggling with a pile of stressed assets and lower profits - are heavily reliant on the government for funds. Rating agency Fitch reckons Indian banks would need $90 billion in new capital to meet Basel III requirements, with about two dozen state-run banks accounting for 80 per cent of that figure. Fourth-biggest state-run lender Punjab National Bank, which reported a record loss in the March quarter, will get 28.16 billion Rupees, the finance ministry said. Bank of India, the third-biggest state-run lender, will get 17.84 billion. Bank stocks rose after the announcement, with the state-bank index trading 0.4 per cent higher in a Mumbai market that was down 0.1 per cent. (Reuters)

India to push $3.4 billion into economy for credit growth

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Government committed to support all state-run banks says, Piyush Goyal

India to push $3.4 billion into economy for credit growth